Research On Corporate Income Tax Policy To Encourage Innovation Under New Development Pattern

Under the new development pattern,the smooth domestic circulation and the promotion of domestic and international double circulation need to be based on the super-large-scale market and domestic demand,and technological innovation plays the most important role in leading and guaranteeing.At present,our country’s high-end product supply capacity is insufficient,and some key technologies and products are controlled by others.To solve this problem,our country should continue to increase innovation.Enterprises are the natural carriers for gathering the elements of scientific and technological innovation,as well as the main body of the implementation of scientific and technological innovation,and their position in implementing the innovation-driven development strategy and enhancing the capability of independent innovation cannot be replaced.However,innovation activities are inherently highly uncertain,and in the absence of effective incentives,market adjustment mechanisms are difficult to function.Both the "14th Five-Year Plan" and the 2022 Report on the Work of the Government proposed to implement tax incentives for enterprises’ basic research investment,implement more vigorous R&D expenses deductions,and high-tech enterprises’ income tax incentives,aiming to encourage enterprises to upgrade their technology.Creativity.The effect of corporate income tax policy to stimulate innovation is affected by the external environment of the enterprise,including the governance capacity of local governments.Local governments are the important promoters of building an innovative country in our country,and there are differences in the governance capabilities of local governments in different provinces,which may have different impacts on the effect of corporate income tax policies on stimulating innovation.So,how effective is the corporate income tax policy in stimulating innovation? Under our country’s special political background,does the strength of local government governance have an impact on the effect of corporate income tax policies on stimulating innovation? The above issues have become issues worthy of study under the new development pattern.In addition,international tax rules will also usher in major changes.our country’s corporate income tax policy to encourage innovation will face the challenge of the global minimum tax rules in the "Pillar Two" plan proposed by the OECD/G20.In view of this,this paper will focus on the following five aspects:Firstly,in terms of theoretical analysis,this paper first analyzes the mechanism of corporate income tax policy affecting enterprise innovation;secondly,it explains the relationship between corporate income tax policy and innovation under the influence of local government governance capacity.The study found that the corporate income tax policy can improve the enthusiasm of enterprises to participate in innovation activities by reducing the cost of research and development,improving the risk-taking ability and alleviating financing constraints.At the same time,under the influence of different local government governance capabilities,the incentive effects of corporate income tax policies are also different.Secondly,in terms of policy evaluation,this paper firstly sorts out the development stage of China’s science and innovation strategy,and analyzes the current status of our country’s innovation level from the aspects of innovation input and innovation output;The enterprise income tax policy to stimulate innovation in the input stage and the achievement transformation stage,and analyze the problems existing in the current policy.The study found that the policies currently implemented in our country have achieved certain effects in stimulating enterprise innovation,but there is still room for further improvement.Finally,it analyzes the challenges of the new international tax rules that our country’s corporate income tax policy to encourage innovation faces.At the same time,whether the "Pillar Two" plan can be implemented smoothly and other countries’ response plans will also affect the optimization direction of our country’s policies.Thirdly,in terms of empirical analysis,this paper takes the R&D expense super deduction policy and the high-tech enterprise income tax preferential policy as examples,using the Difference-in-Difference Model(DID)and the Strggered Difference-in-Difference Model(Strggered DID)to empirically analyze the R&D investment.The impact of corporate income tax policies on innovation in stages and achievement transformation stages.At the same time,in order to further analyze the moderating effect of local government governance capacity on the relationship between corporate income tax policy and innovation,an index system of local government governance capacity was constructed.Empirical research finds that the corporate income tax policy that stimulates innovation can effectively motivate enterprises to increase R&D investment and innovation output,that is,after the enterprise enjoys the preferential tax policy,their innovation level has been significantly improved,and local government governance capacity plays a positive role in regulating effect.Fourthly,in terms of international experience,this paper firstly outlines the corporate income tax policies in the stage of foreign R&D investment,and summarizes the practical experience and enlightenment of typical countries.The beneficiaries are less constrained,the policy and legal level is high,and the incentives for small and medium-sized enterprises and basic research are emphasized;secondly,the corporate income tax policies to stimulate innovation in the stage of foreign achievement transformation are summarized,and the practical experience of relevant policies in typical countries is reviewed.summary.The research finds that the applicable subjects of typical national preferential policies are universal,the applicable tax rate is low,the scope of income covered is wide,and the conditions for outsourcing patents are restricted.Fifthly,in terms of policy suggestions,based on the overall goal of improving our country’s corporate income tax policy to stimulate innovation and the basic principles that need to be followed,it puts forward suggestions for improving our country’s corporate income tax policy to stimulate innovation under the new development pattern.Specifically,first of all,for the corporate income tax policy at the R&D investment stage,it is necessary to optimize the R&D expense super-deduction policy,and implement differentiated and gradient super-deduction policies according to the different characteristics of enterprises and the different strategic needs of R&D projects.Explore the R&D expense credit policy;secondly,for the enterprise income tax policy in the stage of achievement transformation,it is necessary to optimize the preferential income tax policy for high-tech enterprises and the enterprise income tax policy for technology transfer income,encourage enterprises to carry out independent innovation,increase the scale of high-quality patent output,and improve the The policy is precise,and the preferential income tax policies for high-tech enterprises should vary by category;thirdly,in the face of changes in international tax rules,it is proposed to actively participate in the national conditions,continue to track and pay close attention,optimize the tax preferential structure,supply-side preferential policies and demand-side preferential policies.Finally,it is necessary to improve the implementation mechanism of corporate income tax policies that encourage innovation,promote the improvement of local government governance capabilities,improve the legal level of policies,strengthen coordination and cooperation with other policies,and strengthen tax collection and tax services.The possible innovations of this paper are reflected in three aspects: Firstly,it analyzes the challenges brought by the "Pillar Two" to our country’s corporate income tax policy to stimulate innovation,and puts forward policy suggestions to deal with the program according to our country’s national conditions.Specifically,it is necessary to actively participate based on national conditions,continue to track and pay close attention,optimize the tax incentive structure,and coordinate the supply-side corporate income tax preferential policies with the demand-side preferential tax policies.The research conclusions of this paper will provide policy inspiration for our country to formulate the corporate income tax policy to stimulate innovation in response to the "Pillar Two".Secondly,the use of DID,Strggered DID and other models confirms the effectiveness of corporate income tax policy to stimulate innovation,and puts forward constructive suggestions for improving our country’s corporate income tax policy to stimulate innovation under the new development pattern.The research conclusions of this paper will provide policy inspiration for improving our country’s corporate income tax policy to stimulate innovation under the new development pattern.Thirdly,from the perspective of local government governance capacity,the analysis framework of corporate income tax policy incentive innovation is constructed.This paper constructs an indicator system of government governance capacity,and further studies the role of local government governance capacity in the impact of corporate income tax policy on innovationexpanding the research perspective.